Lucknow: Prime Minister Narendra Modi’s appeal to postpone gold purchases has triggered strong concern among Lucknow’s sarafa trade, with jewellers, traders and workers staging a peaceful protest at Powerhouse Crossing in Ashiana on Monday.
The protest was held in response to the Prime Minister’s remarks, which the local jewellery industry believes could adversely affect the city’s traditional sarafa market and the livelihoods connected to it. Members of the association said the appeal had come at a difficult time, when jewellers were already facing pressure from rising gold prices, changing consumer behaviour and broader economic uncertainty.
Traders raised slogans to express their concern, while police personnel were deployed at the site to maintain law and order. The protest, however, remained peaceful.
Speaking on behalf of the trade, Lucknow Sarafa Association president Manish Kumar Varma questioned the possible impact of the appeal on jewellers and workers. He said that if people stop buying gold, the effect would not be limited to shop owners alone but would also reach employees, artisans and other workers connected to the jewellery ecosystem.
According to trade estimates, Lucknow has nearly 6,000 sarafa and jewellery establishments that provide direct and indirect employment to thousands of people. Nearly 30,000 families are directly dependent on the city’s jewellery trade, while more than one lakh families are indirectly associated through craftsmanship, polishing, transportation, designing and allied services.
Chowk Sarafa Association general secretary Vinod Maheshwar also expressed concern over the larger impact on the sector. He said the jewellery trade supports artisans, craftsmen, polish workers, traders and small designers, and any weakening of market sentiment could hurt smaller and medium-sized businesses more sharply than larger organised players.
He added that if demand remains weak for a longer period, many small traders may find it difficult to sustain their businesses, while larger players may continue to dominate the market.
Several participants also pointed to the continued strategic importance of gold globally. They said governments and central banks across the world continue to maintain and increase gold reserves, which shows that the metal remains an important financial asset.
The association also submitted a memorandum highlighting the contribution of the sarafa trade to employment generation and local economic activity. It urged policymakers to differentiate between reducing non-essential imports and discouraging a domestic jewellery ecosystem that supports lakhs of workers across the country.
